🚨NO WHITE SUPREMACISTS INVOLVED🚨
KCAL News published March 27, 2024: Former LA Deputy Mayor Raymond Chan found guilty in court. Former Los Angeles Deputy Mayor Raymond Chan was found guilty Wednesday of federal racketeering conspiracy and bribery charges for his role in a scheme run by convicted ex-City Councilman José Huizar to monetize the real estate approval process at City Hall.
Here is an important excerpt from the KCAL news reporting above, Mack Jenkins Asst US Attorney says, "Ray Chan had access to primarily Chinese major development companies that all had to go through Jose Huizar district to build. For example, one of the tallest buildings west of the Mississippi. So in some ways they had parrel powers that they merged together for a corrupt purpose." The KCAL reporter goes on to say, "Chan served as Deputy Mayor under former Mayor Garcetti from 2016 to 2017." (emphasis mine)
CBS News
written by Danielle Radin
Wednesday March 27, 2024
Former Los Angeles Deputy Mayor Raymond Chan was found guilty Wednesday of federal racketeering conspiracy and bribery charges for his role in a scheme run by convicted ex-City Councilman José Huizar to monetize the real estate approval process at City Hall.
The guilty verdicts on all counts came a little over an hour after the federal criminal jury in downtown Los Angeles began deliberations for the day.
Chan, 67, of Monterey Park, was convicted of a dozen charges, including racketeering conspiracy, two types of bribery and lying to federal agents for his role in the bribery scheme.
Chan was a key member of a conspiracy in which Huizar -- assisted by others -- unlawfully used his office to give favorable treatment to wealthy developers who financed and facilitated bribes and other illicit benefits.
During opening statements two weeks ago in Chan's retrial, Assistant U.S. Attorney Brian Faerstein said the longtime Los Angeles official had three goals: "Get money, keep power, and avoid the feds."
But to defense attorneys, Chan was a dedicated, detail-oriented civil servant who spent his hours working for the city.
"He was helpful -- almost to a fault," Michael Freedman told the jury. "Huizar used him just like Huizar used everyone. Ray Chan didn't create problems -- he solved problems."
Chan was "careful but corrupt," and for years stayed "under the radar" while coordinating bribes in a scheme to soak developers in exchange for getting building projects approved at City Hall, prosecutors said. The defense countered that the former deputy mayor was motivated only by "love of his adopted city" and did nothing illegal.
Before Huizar pleaded guilty to federal charges, he and Chan were scheduled to go on trial together.
Huizar, 55, pleaded guilty last year to felony charges for using his powerful position at City Hall to enrich himself and his associates, and for cheating on his taxes. He was sentenced in January to 13 years in federal prison and ordered to surrender to begin his sentence no later than April 30. He was also ordered to pay nearly $444,000 in restitution to the city of Los Angeles and nearly $39,000 to the IRS.
A mistrial was declared in Chan's first trial last year due to a defense attorney's medical emergency.
Chan worked for the city for almost three dozen years, serving at one point as the top executive overseeing the Department of Building and Safety, which reviews building plans and inspects construction projects.
Sentencing was set for June 10.
*****LA RELATED CORRUPTION NEWS*****
ABC7 published March 27, 2024: Company CFO accused of using funds for homeless to buy luxury goods for girlfriend. A lawsuit filed by a Los Angeles developer claims the company's former CFO embezzled millions of dollars designated for low-income housing projects, and instead used it to fund a lavish lifestyle for himself and his ex-girlfriend.
ABC7 News, Los Angeles local
written by Rob McMillan
Wednesday March 27, 2024
LOS ANGELES - A lawsuit filed by a Los Angeles developer claims the company's former CFO embezzled millions of dollars designated for low-income housing projects, and instead used it to fund a lavish lifestyle for himself and his ex-girlfriend.
According to the complaint, Cody Holmes, 29, used his position with Shangri-La Industries to transfer vast sums of money to himself and Madeline Witt, 28, to pay for exotic cars, expensive handbags, jewelry, private jets, concert tickets and the monthly rent for a 6,500-square-foot mansion in Beverly Hills.
"He took advantage of his position and embezzled millions of dollars using fraudulent and deceptive means to do so," said Brian A. Sun, an attorney representing Shangri-La Industries. "(Those schemes included) doctoring up signatures, creating documents, and opening up fictitious accounts as detailed in our complaint."
According to the complaint, several years ago Shangri-La Industries utilized state funding made available through affordable housing programs such as Project Homekey to build and maintain low-income housing projects designated for the homeless.
But several of the properties are now in foreclosure, including Project Homekey developments at former motels in Redlands and San Bernardino. The company is being sued by the California Department of Housing and Community Development for breach of contract.
Shangri-La's attorney blames the former CFO's embezzlement schemes for the company's predicament.
"Besides being shocked, disappointed and horrified with Holmes' actions, we're astounded to the level and degree that he went to achieve and manipulate others besides us in pursuing his fraudulent activities."
According to the lawsuit, Holmes and Witt are accused of fraudulently using Shangri-La funds to purchase luxury items such as a $35,000 Audemars Piaget diamond watch, $16,839 for a Hermes Orange Togo Birkin, $127,073 for a 53-carat weight diamond necklace, $43,475 for private jet travel, $53,400 for special events passes at the Coachella Music and Arts festival, a Ferrari Portofino, a Bentley Bentayga, and $48,000 to cover the rent at a 6,500-square-foot property in Beverly Hills.
Sun said that his client is asking for a temporary restraining order against Holmes and Witt, out of concern that he's liquidating the ill-gotten assets.
"We have significant concerns that Holmes is dissipating the assets that he absconded with; namely the money he stole and is converting into certain types of items. And we have strong reason (to believe) he's liquidating those assets, turning them to cash, and then possibly moving them offshore and moving them in a way that would not be reachable to his creditors."
Shangri-La Industries is seeking damages greater than $20 million for money allegedly embezzled by the defendants, and an additional $20 million in damages because of financial exposure to third parties and lost business income because of the alleged theft.
Eyewitness News has been unable to reach either Holmes or Witt for comment. So far, court records indicate they have not filed an answer to the lawsuit.
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